Prepare for the U.S. and China to Decouple

“The pandemic is likely the accelerate a trend to a bipolar U.S. vs. China world. In this context, firms present in Hong Kong and China need to prepare for a less friendly environment there. Practical steps include reducing the Hong Kong presence, relocating supply chains to politically friendly countries, re-evaluate relationships with Chinese firms and researchers, and factor geopolitical risk into investment decisions.”